Surana Telecom to set up Rs 10cr facility in Goa

Hyderabad-based Surana Telecom Limited, a leading manufacturer of optical fibre and jelly-filled cables, is in the process of setting up a Rs 10-crore telecom component manufacturing facility in Goa.

The Goa plant will manufacture components used in CDMA (code division multiple access ) telephones. Surana Telecom is expected to close the current financial year with a turnover of around Rs 105 crore.

Speaking to Business Standard, Narender Surana, managing director of Surana Telecom Limited, said, "The company till now used to import these products, but to bring down the cost further we are setting up the new unit which would manufacture as well as assemble various components used in CDMA phones."

According to him, the plant would be operational in the next four to five months, and the Rs 10-crore investment will be raised through internal accruals.

"As of now, the telephone division (mobiles, CDMA, fixed wireless telephones) is contributing around 40 per cent of the sales while the rest is coming from the cables and the old products range. We expect the telephone division to contribute 50 per cent of the sales in the next one year," Surana said.

Surana Telecom is also looking at launching a new product in the broadband area in the next three months. "The new product that we would be launching will provide services like voice, data and video through a single wire," Surana said.

According to him, the company has already signed a memorandum of understanding with the US-based Xalted, which would be supplying the modems.

"Though the US company would initially be supplying the modems and other material required, we are looking at indigenising some parts or at least the software before supplying it to various broadband service providers," Surana said. "In the next one year we expect at least 10 per cent revenue from the new product," he added.

Surana Telecom, which until now was a domestic player, is also looking at exporting its various assembled products to countries in the Saarc region and also to the US.

"Though we held discussions with various companies in the Saarc region, no physical exports have taken so far. But in the next fiscal we are looking at exporting at least 100,000 units," Surana said.

The company has reported a whopping 697 per cent increase in net profit for the third quarter this fiscal. Net profit for the quarter ended December 31, 2004, was Rs 4.15 crore as compared to Rs 52.13 lakh for the same period last fiscal.

The income from operations for the quarter grew 246 per cent to touch Rs 15.71 crore as compared to Rs 4.53 crore for the corresponding quarter. Profit before tax for the quarter stood at Rs 4.41 crore as compared to Rs 68.13 lakh for the same period last year, a growth of 548 per cent.

Surana Telecom, which clocked a turnover of Rs 45 crore last fiscal, expects its turnover to touch Rs 105 crore this fiscal with a 13 per cent growth in net profit.

Dialling growth

• Goa plant to manufacture components used in CDMA telephones
• Plant would be operational in the next 4-5 months, & the Rs 10-crore investment will be raised through internal accruals
• Company also plans to launch new product in the broadband area in the next three months